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Media Release - Monday 16 May 2000
Peter Reith Launches New Service To Help Companies
Prepare for the GST
The Hon Peter Reith MP, Federal Minister for Employment, Workplace
Relations & Small Business, today launched a new free web information
service to help businesses prepare for the GST.
The new service, called ABNsearch, will list details about all GST
registered businesses in Australia, including their all important
Australian Business Number (ABN) for tax credit purposes.*
From 1 July, all businesses will need to know the ABNs of their
suppliers in order to claim the 10 per cent GST paid on goods and services
bought from those suppliers.
A joint initiative of the Commonwealth Bank and Dun & Bradstreet,
the new service will be available at www.abnsearch.com.au.
Information on the site will be sourced from Dun & Bradstreet’s
database and from the Department of Workplace Relations’ Business Entry
Point website.
As well as providing company ABNs, the site also lists the correct
legal names of all GST registered organisations, trading names, company
types and locations.
ABNsearch is also linked to the Commonwealth Bank and Dun &
Bradstreet websites which offer customers traditional services including
online banking and access to business marketing and credit information.
Speaking at the launch, the Minister said: "This is a good example
of business using the facilities that have emerged from the new tax system
to add value to their customers."
Mr James Price, General Manager, Business Customers, the Commonwealth
Bank, said: "ABNsearch is a fast and easy way for companies to find
their suppliers’ ABNS. The service is free and can eliminate the expense
and hours of manual work involved in contacting trading partners asking
for necessary ABN details. It’s smart, fast and simple.
"There’s no doubt that implementation of the GST is a major
issue for all our clients, particularly those in small to medium sized
businesses. We believe ABNsearch will help them to manage that
implementation more efficiently."
Ms Christine Christian, Managing Director, Dun & Bradstreet
Australia & New Zealand, said the development of ABNsearch with the
Commonwealth Bank typified Dun & Bradstreet’s strategy for the new
millennium.
"For some time now, we have been focusing on new ways of using Dun
& Bradstreet’s core, traditional business information services to
develop smart new products for the Information Age," she said.
"We are doing this both independently and through strategic
alliances with other leading organisations. "
"As the owner of the world’s largest database, Dun &
Bradstreet is in a very enviable position right now. Businesses need to
use as much information as they can get at the moment in order to develop
smart new services and solutions for their customers.
"And we have that information – as much or as little as anyone
wants."
"As the Information Age gathers momentum, it’s a great position
to be in," she said.
"This is a tremendously exciting time for Dun & Bradstreet.
The opportunities for the company really are without limit."
Dun & Bradstreet owns the largest database of verified data in the
world. Updated 950,000 times daily, it covers 57 million public and
private companies in 200 countries.
The Commonwealth Bank has over 550,000 small and medium sized business
customers and offers an extensive range of business banking and financial
solutions.
* ABNsearch is live as at 16 May; all ABNs will be loaded by 31 May
2000.
CONTACT: Linda King or John Cooke, King Public Relations (03) 9696 5909
or 0412 490 777
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| The Minister for Employment,
Workplace Relations and Small Business - The Hon Peter Reith
addressing the press at the launch of ABNsearch.com.au |
Media Release - Monday 16 May 2000
Twenty Per Cent of Australian Companies NOT Prepared for GST, Survey Reveals
Twenty per cent of Australian businesses have not yet
obtained their Australian Business Number according to a national survey by
business information specialists, Dun & Bradstreet.
The survey revealed that of those companies who have not obtained their ABN,
19 per cent said it was not a priority for them and 73 per cent did not
intend to apply for one immediately.
Only 66 per cent of all companies surveyed had appointed someone to
facilitate the transition of the new tax system into their business.
And over half (52 per cent) had not begun the process of obtaining ABNs from
their suppliers.
D&B Managing Director, Ms Christine Christian, said this was a worrying
trend just less than six weeks before the introduction of the new tax
system.
"It seems many Australian businesses are leaving their run far too late
to accommodate the changes," Ms Christian said.
"It is becoming increasingly obvious that many small and medium sized
businesses are severely underestimating the financial implications of not
being GST ready.
"Many have not even registered for their ABN at this stage. This shows
either an alarming level of complacency or a basic failure to grasp the full
facts.
"To put it bluntly, most businesses which are not ready for the
introduction of the GST on 1 July will, simply, be left out in the cold.
They will, in many cases, go under and just not come back up again, taking
with them years of hard work, investment and jobs. And the ripple effect of
these small business closures will be felt throughout Australia.
"The bottom line is that without an ABN, companies cannot trade
properly. They face a punitive 48.5 per cent withholding tax on all income
after 1 July and will not be able to claim input tax credits for GST charged
by their suppliers.
"In many cases, they will find that they are no longer part of
corporate Australia’s future supplier base. Other companies will simply
refuse to deal with them. This is certainly the case when dealing with
Federal Government Agencies.
"Small business must act now. Every company needs to register for their
own ABN and start checking out their suppliers for ABN readiness too.
"Small businesses in particular just cannot afford to deal with
suppliers who are not ABN registered. The extra work involved for them in
processing the withholding taxes will simply prove too much. Their
administrative costs will soar, placing a huge financial burden on them.
"It’s a nightmare waiting to happen. If the small business sector
doesn’t get its act together immediately, the social and economic
implications for this country will be enormous."
Ms Christian was speaking at the launch of ABNsearch, a new free web
information service designed to help business to prepare for the GST.
A joint initiative of the Commonwealth Bank and Dun & Bradstreet, the
new service was launched in Melbourne today by the Hon Peter Reith, Federal
Minister for Employment, Workplace Relations & Small Business.
ABNsearch is available at: www.abnsearch.com.au
It will list details about all GST registered businesses in Australia,
including their ABN*, correct legal name, trading name, company type and
location. All information on the site will be sourced from Dun &
Bradstreet’s database or from the Department of Workplace Relations’
Business Entry point website.
Mr James Price, General Manager, Business Customers, the Commonwealth Bank,
said: "ABNsearch is a fast and easy way for companies to find their
suppliers’ ABNS. The service is free and can eliminate the expense and
hours of manual work involved in contacting trading partners asking for
necessary ABN details. It’s smart, fast and simple."
ABNsearch will also be linked to the Commonwealth Bank and Dun &
Bradstreet websites which offer customers traditional services including
online banking and access to business marketing and credit information.
Dun & Bradstreet is the world’s leading business information
specialist. It maintains the largest database of verified data in the world.
Updated 950,000 times daily, it covers over 57 million public and private
companies in 200 countries.
The Commonwealth Bank has over 550,000 small and middle sized business
customers and offers an extensive range of business banking and financial
solutions.
Businesses have until the end of May to register for an ABN in time for the
introduction of the new tax system on 1 July. Online registration is the
most efficient method via www.business.gov.au.
* ABNsearch is live as at 16 May; all ABNs will be loaded by 31 May
2000.
CONTACT: Linda King or John Cooke, King Public Relations (03) 9696 5909 or
0412 490 777
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